Martinsburg revenues close to the mark

Through first half of fiscal year, city has collected 49.6 percent of projected earnings

February 22, 2013

MARTINSBURG - Through the first six months of the 2012-13 fiscal year, the city of Martinsburg's revenues as a whole are about where they were projected to be, Mark Spickler, the city's finance director, said in a telephone interview Thursday.

The year to date revenues from July through December were released earlier this month.

"We're maintaining revenues going forward," he said. "The operating budget is $13.9 million and we've collected to date about 49.6 percent (or about $6.9 million)."

At $6.5 million, business and occupation tax revenues is the city's largest source of revenue, accounting for about 47 percent of the total operating budget.

Through the first half of the current fiscal year, the city has collected about 49.7 percent of projected B&O tax revenues, or about $3.2 million.

Spickler would have liked the B&O tax revenues to be more than that, he said.

This year and last year, B&O tax revenues have leveled off at about the same level as they were six years ago, Spickler said.

"We peaked in 2007-08 at $7.75 million," he said. "That was when we raised the rate and the economy was booming and before there was competition."

The competition Spickler is referring to is the development of The Commons big-box shopping center outside the city limits, off Apple Harvest Drive. The first stores opened in 2009. Some stores that were located within the city moved to The Commons, including AAA and Gamestop.

Of course, 2008 was the beginning of the Great Recession and revenues began to decrease. In 2008-09, B&O tax revenues dropped to $7.1 million, Spickler said. In 2009-10, they went down to $6.8 million and down to $6.6 million in 2010-11, he said.

Spickler added that when B&O tax revenues were high, the city offered tax breaks to new businesses opening in town, which have continued. New business tax credits cost the city about $100,000 this year, he said.

B&O tax revenues could get a boost this spring when construction of the Raleigh Street Extension project resumes, Spickler said. Construction companies must pay B&O taxes when working on projects in the city.

The middle section of the new highway is expected to be completed in August or September. The north section is complete and the south section is practically finished, except for some finishing touches.

The city's other large revenue source is personal and real property taxes, which account for about 16 percent of the operating budget, or about $2.2 million.

For the first half of the current fiscal year, the city has collected nearly 63 percent of property tax revenue projections, or about $1.3 million.

The city is just beginning the budgeting process for the fiscal year that begins July 1. A meeting of the City Council's budget and finance committee has been called for 4:30 p.m. Tuesday to begin budget discussions.

The city must deliver its budget to the state auditor's office for review by March 28.